Will I buy? Maybe, but not at current levels (112.22).
First off, we haven’t had a retest of 111.90 as new support. Second, the 10 and 20 EMAs are lagging below today’s price by 160 pips. That leads me to believe that a pullback or at least some sideways consolidation is likely over the coming sessions.
Even if we do get a retest, I won’t act right away. Instead, I’ll sit back and watch to see how USDJPY bulls handle themselves in the 111.90 region. If bullish price action develops and the 10 and 20 EMA tell me that the price has reset, then I’ll consider an entry.
If I miss the opportunity to get long, so be it. There will always be more opportunities tomorrow. I would always rather miss an entry than get stuck on the wrong side of the market.
The next key resistance comes in at 113.15 followed by the May and July highs at 114.35. Alternatively, a daily close back below the 111.90 handle would negate the bullish outlook and re-expose the 110.90 area.
Source: bit.ly/2fcKMFX
First off, we haven’t had a retest of 111.90 as new support. Second, the 10 and 20 EMAs are lagging below today’s price by 160 pips. That leads me to believe that a pullback or at least some sideways consolidation is likely over the coming sessions.
Even if we do get a retest, I won’t act right away. Instead, I’ll sit back and watch to see how USDJPY bulls handle themselves in the 111.90 region. If bullish price action develops and the 10 and 20 EMA tell me that the price has reset, then I’ll consider an entry.
If I miss the opportunity to get long, so be it. There will always be more opportunities tomorrow. I would always rather miss an entry than get stuck on the wrong side of the market.
The next key resistance comes in at 113.15 followed by the May and July highs at 114.35. Alternatively, a daily close back below the 111.90 handle would negate the bullish outlook and re-expose the 110.90 area.
Source: bit.ly/2fcKMFX